CVS Health’s Aetna inks 4-year agreement with Vitality Re X
CVS Health’s recently acquired health insurer has entered a partnership that’s part of its long-term capital management strategy. The company announced Thursday that Aetna has inked a four-year reinsurance arrangement with Vitality Re X, a new insurance company.
The arrangement allows CVS Health to reduce its required capital and provides $200 million of collateralized excess of loss reinsurance coverage on a portion of Aetna's group commercial health insurance business, the company said.
Vitality Re X issued health insurance-linked notes in a private offering in connection with this transaction.
"Today's transaction marks the successful completion of the 10th reinsurance arrangement under the Vitality Re program," CVS Health chief financial officer Eva Boratto said. "The Vitality Re program is an important component of our capital structure that lowers our cost of capital and drives capital efficiency."
The arrangement allows CVS Health to reduce its required capital and provides $200 million of collateralized excess of loss reinsurance coverage on a portion of Aetna's group commercial health insurance business, the company said.
Vitality Re X issued health insurance-linked notes in a private offering in connection with this transaction.
"Today's transaction marks the successful completion of the 10th reinsurance arrangement under the Vitality Re program," CVS Health chief financial officer Eva Boratto said. "The Vitality Re program is an important component of our capital structure that lowers our cost of capital and drives capital efficiency."